Australia Signals Big Crypto Ambitions With $24B Framework and Tighter Custody Standards

Australia is accelerating its push into digital finance with the introduction of the Corporations Amendment (Digital Assets Framework) Bill 2025, a comprehensive regulatory overhaul designed to strengthen crypto custody standards, improve investor protection, and unlock an estimated $24 billion in annual economic value.

The bill establishes the country’s first comprehensive framework for digital asset platforms and crypto custodians, positioning Australia as one of the most proactive jurisdictions in the global race for crypto regulation.

A New Licensing Regime to Protect Consumers

The cornerstone of the legislation is a requirement for crypto exchanges and custody providers to obtain an Australian Financial Services License (AFSL).

This brings them under the supervision of the Australian Securities and Investments Commission (ASIC), a major structural shift for an industry that previously operated in a fragmented regulatory space.

Assistant Treasurer Daniel Mulino emphasized that Australia must “keep pace” with financial innovation. The bill specifically targets firms holding customer crypto, rather than blockchain technology itself, addressing a widespread concern that companies can currently store unlimited digital assets for clients without adequate safeguards.

To close this gap, the bill introduces two new regulated categories:

• Digital asset platforms
• Tokenized custody platforms

Both will be subject to strict standards for transactions, settlements, asset storage, and mandatory disclosure of risks and fees.

Balancing Innovation With Oversight

While the legislation imposes tough standards, it also aims to support responsible growth in the digital asset sector. Companies handling less than A$10 million in annual transactions or participating in crypto only as an incidental activity will be exempt from licensing.

Industry response has been broadly positive, with firms like Crypto.com and DECA calling the bill a long-awaited step that provides regulatory clarity without stifling innovation. A phased rollout, a 12-month preparation period followed by a six-month transition window, gives platforms time to meet the new requirements.

ASIC’s recent crackdown on scams underscores the urgency. Since mid-2023, the regulator has removed over 14,000 phishing and scam sites, approximately 20% of which were related to cryptocurrency.

A Transformational Step for Australia’s Digital Finance Future

Treasurer Jim Chalmers noted that digital assets, from cryptocurrencies to tokenized real-world assets, represent a significant economic opportunity. Research cited by the government suggests that the reforms could help unlock up to $24 billion annually in productivity and efficiencies across the financial sector.

However, industry experts warn that coordination across ASIC, AUSTRAC, and the ATO will be essential. The bill’s success will depend on whether the final regulatory framework is both enforceable and flexible enough to adapt to rapid innovation in tokenization and blockchain services.

As the bill moves through Parliament, with easy passage expected in the House, the key question is whether crossbench support in the Senate will solidify Australia’s position as a global leader in secure, innovation-friendly crypto regulation.

Cover image from ChatGPT, BTCUSD on Tradingview